Ian Cowie was named Consumer Affairs Journalist of the Year in the
London Press Club Awards 2012. He has been head of personal finance at
Telegraph Media Group since 2008, having been personal finance editor
since 1989. He joined the paper in 1986. He is @iancowie on Twitter.

So, while new technology has proved problematic for many industries, ubiquitous access to instantly updated odds via mobile phones and tablets is boosting the bookies’ business.

888 Holdings is the current leader of the pack, with its share price more than trebling from its low-point during the last 12 months to trade around 167p this week. The online bookmaker has been a major beneficiary not just of business moving online but also recent relaxation of some American states’ legal prohibition of gambling.

Paddy Power, listed in Dublin, has also done well; boosting shareholders’ money by 70pc since the low-point last year. Closer to home, Ladbrokes has bounced back from criticism of its failure to exploit digital technology, with the shares rising from 150p to 240p during the last year.

Who says gambling never pays? However, it’s only fair to add that the shares have been as high as 447p recently and I invested for the yield – which was about 6pc net of basic rate tax at outset – rather than any great hopes of capital gains.

Encouragingly, Stephen Timoney of stockbrokers Killik remains optimistic. He told me: “William Hill remains our key pick for exposure to growth in online gaming and, following the Sportingbet Australia acquisition and the recently announced buyout of the Playtech minority stake, we expect the group to continue its re-rating towards a price/earnings (P/E) multiple more in line with that of Paddy Power, as it generates a greater proportion of its earnings from its online business.

“Meanwhile, the announcements last month that the state of Nevada had legalised gambling – and that the state of New Jersey intends to do so shortly – are perhaps more important for the likes of 888 Holdings.

“Indeed, the group announced this week that it has entered into a joint venture, called All American Poker Network, to launch in the US market upon regulation. Receipt of the Nevada licence will allow it to launch the real 888 poker brand in Nevada once all certifications are in place, expected later this year.”

Against all that, other analysts feel that a P/E of more than 15 – which means you would need over 15 years’ earnings per share to equal the purchase price – is already quite expensive enough for William Hill. The current yield of 2.6pc is also much less attractive than it used to be.

So I was particularly keen to hear what Carl Stick, manager of Rathbone Income Fund, had to say, as he was first to tell me about the stock’s appeal in early 2011. This week he told me: “When we first looked at William Hill, the market’s perception was one of a business in decline.

“The market was very much focused on the high street, and as far as the internet was concerned, the belief was that other businesses were better placed. To us, that seemed harsh.

“From today’s standpoint, investors are viewing the business as leaders in the online space. It has done its job, and the valuation attributed to this has changed – from cheap stock to bee’s knees. On that basis, and on the current rating, we have thought it prudent to shave our holding – although our position is still large at 3pc of the fund.”

Worse still, the whole sector could be hit by next week’s Budget. Ivor Jones, leisure analyst at Numis stockbrokers pointed out: “Last year’s tax changes cost William Hill and Ladbrokes a net £15m annually each. If the gross profits tax were to be increased to, say, 20pc it would hit earnings per share at both companies by 8pc.”

Few tears would be shed if the Chancellor decided to be be beastly to the bookies. Many voters are relaxed about heavier taxes on other people’s vices – just consider calls for minimum alcohol pricing and higher tobacco duties.

But other pleasures of which moralists may disapprove can prove profitable for the Chancellor and shareholders alike, because of what economists call ‘inelastic demand’. In plain English, the punters will pay up – come what may.

That’s what put me off gambling more than 30 years ago when I was still at school. Working as a board marker on Saturdays at the local bookies, I often saw men of modest means start the afternoon with bold bets of £20 to win before finishing the day with 50p each way.

My local tipster and philosopher, Graham Islin, summed it up: “All you need to know about gambling against the bookies is that they have three or four windows in every shop saying ‘bet here’ and only one for payouts.”

The fundamental difference between gambling and investment remains that most betting slips are worthless by the end of the day, while relatively few share prices go to zero. However, there is one thing that gambling and stock market investment have in common; you should never put in more than you can afford to lose.